Labels Lack Food's Origin Despite Law

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Jul 5, 2007, 1:40:32 PM7/5/07
to More Things in Heaven and Earth
Originally found at: http://www.nytimes.com/2007/07/02/business/02label.html

July 2, 2007
Labels Lack Food's Origin Despite Law
By ANDREW MARTIN

In every American supermarket, labels tell shoppers where their
seafood came from. But there are no such labels for meat, produce or
nuts.

Behind the contradiction is a lesson in political power in Washington,
where lobbyists and members of Congress have managed to hold off the
enforcement of a five-year-old law that required country-of-origin
labeling on meat and produce as well as fish.

Now, with Democrats in control of Congress and mounting questions
about the safety of food imported from China, proponents of the
labeling law say they believe that they finally have momentum on their
side.

After all, they say, at a time when consumers are ever more concerned
about where their food is coming from, why not just tell them on the
package?

"No. 1, there's a basic consumer right to know," said Michael Hansen,
senior scientist at Consumers Union, an advocacy group that publishes
Consumer Reports magazine and supports the labeling law. "People are
more and more concerned about the food they eat."

But the labeling law has formidable foes, including the meat lobby,
which so far has outmaneuvered its opponents on Capitol Hill. In the
years since the labeling law was enacted as part of the 2002 Farm
Bill, its opponents have successfully blocked all but seafood labeling
from taking effect.

Opponents of the law say they believe that it is too onerous and
expensive and is simply a way for American farmers and ranchers to
block cheaper foreign competitors.

Besides, they contend, retailers can voluntarily offer country-of-
origin labels, as they do with hormone-free milk and organic foods.

"No one was prohibited from putting labels on products," said former
Representative Henry Bonilla, Republican of Texas, who as head of the
appropriations subcommittee on agriculture pushed through delays of
mandatory origin labeling. "If consumers wanted this, they could have
demanded it."

Critics say meatpackers simply do not want consumers to know that an
increasing amount of hamburger meat and produce is being imported.

The fate of the country-of-origin labeling, known as COOL for short,
will likely be resolved in the coming months as Congress rewrites farm
policy.

The battle over the labeling law comes at a time when American farmers
are facing increasing competition from all corners of the world:
soybeans from Brazil, wheat from Ukraine and apples from China, to
name a few. American consumers, meanwhile, are eating more food grown
and processed overseas.

During the last decade, the value of imported food has roughly
doubled, to $65.3 billion in 2006.

The meat lobby has historically been a powerful and efficient
operation in Washington, with deep ties to Capitol Hill and the
Department of Agriculture. Along with the grocery industry, the meat
lobby has waged an effective campaign to stymie efforts to carry out
the law.

The law required country-of-origin labeling on beef, pork, lamb, fresh
fruits and vegetables, seafood and peanuts. To date, the debate has
mainly been driven by the meat industry, with the produce and peanut
industries playing a much quieter role.

The biggest supporters of the labeling law in Congress come from Great
Plains states where ranchers face stiff competition from Canada.

A central reason the seafood labeling was pushed through in 2005 was
Senator Ted Stevens, Republican of Alaska, who was chairman of the
powerful Senate Committee on Appropriations at the time. He went to
bat for Alaska fishermen, who benefited from a provision in the law
that fish and shellfish include not only country of origin but whether
it was farm-raised or caught in the wild.

Today, both sides of the debate over origin labeling contend that the
seafood labels support their arguments.

For instance, in March, the Food Marketing Institute, a trade
organization, said seafood labeling had cost 10 times more than
original estimates and failed to increase sales of American seafood.

But the United Fishermen of Alaska tell a different story, saying that
origin labeling has increased demand and prices for their wild salmon.
And with the current concerns over Chinese seafood, labeling of
seafood gives consumers the option to buy something else, advocates
say.

The push for origin labeling started in the mid-1990s, when cattle
ranchers grew frustrated by the influx of imported beef, particularly
from Canada, as a result of trade agreements that opened the border to
imports.

The thinking behind the proposal was that, given a choice, consumers
would likely choose products from the United States over imported
ones, even if they cost more. But origin labeling is not just about
patriotism or a desire to help American farmers. Part of its appeal is
better food oversight, and some proponents of the measure have played
to consumer anxiety by calling into question the safety of meat from
places like Mexico, Uruguay and Canada. China exports a negligible
amount of meat to the United States.

"The consumer, upon seeing the U.S.D.A. label, would naturally presume
that it's a U.S. product," said Bill Bullard, chief executive of the
Ranchers-Cattlemen Action Legal fund, United Stockgrowers of America,
an organization of cattle ranchers better known as R-Calf. He said the
effect for meatpackers was that "they are able to bring in a cheaper
product and sell it under the reputation of the U.S. cattle industry."

Opponents of origin labeling say the measure is simply protectionism,
aided by false claims about imported products. American meatpackers
may stop buying imported cattle altogether given the costs of
segregating and keeping track of such products.

They also say it would be difficult and expensive to label ground meat
like hamburger, since it often includes meat from different cows.

"They talk about how the quality is better in the United States," said
Mark D. Dopp, senior vice president for regulator affairs and general
counsel for the American Meat Institute, a trade group. "The standards
are all the same. For these people to talk about how all this inferior
product is coming in, it's just nonsense."

Legislation for origin labeling floundered until the 2002 Farm Bill
was coming together, in part because of a strong push by Thomas A.
Daschle, then the Senate majority leader, where support for the
labeling law is strong. As a compromise, origin labeling was made
voluntary for the first two years before becoming mandatory in 2004.

But those efforts were quickly undone by the meat lobby.

Just after the law was passed, the secretary of agriculture at the
time, Ann M. Veneman, called it "unfortunate" and suggested that
origin labeling could violate trade agreements, drawing a strong
rebuke from the law's advocates in Congress.

During Ms. Veneman's tenure, the top ranks of the Department of
Agriculture included executives with ties to the meatpacking industry.
For instance, her chief of staff, Dale Moore, was the former head of
legislative affairs for the National Cattlemen's Beef Association. The
same trade group employed her director of communications, Alisa
Harrison, and the deputy under secretary, Charles Lambert, who would
have overseen the origin labeling program.

The National Cattlemen's Beef Association, which represents both
ranchers and meatpackers, opposes origin labeling.

The Department of Agriculture estimated that the cost of paperwork to
manage the program in its first year would be $1.9 billion, a figure
the Government Accountability Office said was questionable and not
supported by the agency's records.

But the real undoing of origin labeling occurred in Congress.

In 2003, a year before the labeling was supposed to go into effect,
Mr. Bonilla pushed through a delay of mandatory origin labeling for
another two years.

Two years later, again largely because of Mr. Bonilla's efforts, the
House passed an appropriations bill that prohibited the Department of
Agriculture from spending money to put into effect origin labeling
until September 2007.

According to the Center for Responsive Politics, a nonpartisan group
that tracks campaign spending, Mr. Bonilla received $158,328 in
campaign funds in 2006 from the livestock industry, making him the top
recipient in Congress. He was also the top recipient of campaign funds
from the livestock industry in 2004, with $132,900, and ranked second
in 2002, with $78,350.

Mr. Bonilla, who was defeated in 2006 by Ciro Rodriguez, said it was
common for committee chairmen to receive contributions from the
industries that they oversee. Besides, he said his Congressional
district was a huge cattle ranching and agricultural region.

Mr. Bonilla does not dispute that he delayed the labeling law from
taking effect. But he said it was a bad idea that would be costly to
not only cattle producers and meatpackers but grocery stores as well.

But now, with Democrats in charge of Congress, advocates of the
labeling law are trying to mount their own lobbying and public
relations blitz on Capitol Hill. And for now, they are receiving a
warmer welcome from some Congressional leaders.

For instance, Mr. Bonilla's successor on the subcommittee,
Representative Rosa L. DeLauro, Democrat of Connecticut, is a
supporter of the labeling law. Ms. DeLauro received $100,750 in
campaign contributions from agribusiness in her 2006 campaign, $4,000
of which came from the livestock industry.

"There will be mandatory COOL by 2008 at the latest," she said.

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